Multiple Choice
Kens utility function is U(Q K, W K ) = Q K W K and Barbies utility function is U(Q B, W B ) = Q B W B. If Kens initial endowment were 3 units of quiche and 11 units of wine and Barbies endowment were 6 units of quiche and 11 units of wine, then at any Pareto optimal allocation where both persons consumed some of each good,
A) Ken would consume 3 units of quiche for every 11 units of wine that he consumed.
B) Barbie would consume twice as much quiche as Ken.
C) Ken would consume 9 units of quiche for every 22 units of wine that he consumed.
D) Barbie would consume 6 units of quiche for every 11 units of wine that she consumed.
E) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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